Page 104 - InterloopAnnualReport2021

NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

The amendments do not have any significant impact on these financial statements.

– Amendment to IFRS 3 ‘Business Combinations’ – Definition of a Business (effective for business
combinations for which the acquisition date is on or after the beginning of annual period
beginning on or after January 01, 2020):
The IASB has issued amendments aiming to resolve the difficulties that arise when an entity
determines whether it has acquired a business or a group of assets. The amendments clarify that
to be considered a business, an acquired set of activities and assets must include, at a minimum,
an input and a substantive process that together significantly contribute to the ability to create
outputs. The amendments include an election to use a concentration test. The amendment does
not have any significant impact on these financial statements.

During the year certain other amendments to standards or new interpretations became effective,
however, the amendments or interpretations did not have any material effect on these financial
statements of the Company.

4.2 Standards, interpretations and amendments to approved accounting standards that are issued but
not yet effective and have not been early adopted by the Company
– Amendment to IAS 16 ‘Property, Plant and Equipment’ - Proceeds before Intended Use
(effective for annual period beginning on or after January 01, 2022):
The amendment prohibit deducting from the cost of an item of property, plant and equipment
any proceeds from selling items produced while bringing that asset to the location and condition
necessary for it to be capable of operating in the manner intended by management. Instead, an
entity recognizes the proceeds from selling such items, and the cost of producing those items, in
profit or loss. The amendment is not likely to have an impact on the Company’s financial statements.

– Amendment to IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ - Onerous
Contracts - Cost of Fulfilling a Contract (effective for annual period beginning on or after
January 01, 2022):
The amendment specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly
to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling
that contract (examples would be direct labour, materials) or an allocation of other costs that relate
directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an
item of property, plant and equipment used in fulfilling the contract). The amendment is not likely
to have an impact on the Company’s financial statements.

– Amendments to IFRS 3, ‘Business Combinations’ - Reference to the Conceptual Framework
(effective for the Company’s annual period beginning on January 01, 2022):
The amendments are intended to replace a reference to the Framework for the Preparation
and Presentation of Financial Statements, issued in 1989 with a reference to the Conceptual
Framework for Financial Reporting, that was issued in March 2018, without significantly changing
its requirements. In addition, the Board added an exception to the recognition principle of IFRS 3 to
avoid the issue of potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities and
it clarified existing guidance in IFRS 3 for contingent assets. The amendment is not likely to have an
impact on the Company’s financial statements.

– Amendments to IAS 8, ‘Accounting policies, changes in accounting estimates and errors’ -
Definition of Accounting Estimates (effective for the Company’s annual period beginning on
January 01, 2023):
The amendments replace the definition of a change in accounting estimates with a definition of
accounting estimates. Under the new definition, accounting estimates are “monetary amounts in
financial statements that are subject to measurement uncertainty”. Entities develop accounting
estimates if accounting policies require items in financial statements to be measured in a way that
involves measurement uncertainty. The amendments clarify that a change in accounting estimate
that results from new information or new developments is not the correction of an error. The
Company is yet to assess the full impact of the amendment.

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